Analyzing Results
When your business is stagnant or it's not growing at the pace you would like, where do you look? What really makes a difference? Analyzing results is certainly high on the list!
In this segment, I'll break out results into smaller categories. As Jim Rohn stated so profoundly, "Success is a refined study of the obvious." There's no doubt in my mind!
The Client Experience
Are you doing more than you get paid for? Are your clients happy? Are they referring? Are they coming back? Are they leaving 5 star reviews?
It's crucial that you examine your client's actual experience and solicit feedback. If they are had a great experience, it will result in more business more often than not. On the other hand, if your business tends to be more of a revolving door, in my opinion, you are missing out on the best business on the planet. Clients that trust and value your expertise. These type of clients are like compound interest as your sphere grows, they repeat, refer, and spread the word. Over time, it really is a snowball effect.
Marketing Accountability
Marketing expenditure needs to be held accountable at some point. Typically in the 6-12 month range is advisable. For example, if you are spending 10k a year with Zillow, it best be turning into far more revenue in the short term.
At the very least, I would advise you to look at all your marketing streams yearly and examine if they are actually turning into a profit or aiding you in your journey. If it's clearly a waste of time and resources or it doesn't align, try something else!!
Here's the secret. When you find a marketing strategy that works and produces results, you can simply expand on that strategy. For instance, you have found a farming approach that works very well for you. Take that approach and apply it to another neighborhood or expand within your current farm area. It will typically work again when you apply your experience!
Conversions
What percentage of your listing appointments list or your buyer appointments turn into actual buyers?
It's important to look at your approach and seek to improve and connect on a higher level. There is a ton of money to be made if you convert even 10% more!
A low conversion rate could be tied to the quality of lead, competence or both.This is an area where many agents struggle to take root. The good news, it's fixable!
Sales
Perhaps you are strong in converting buyer/seller appointments into clients, but you would like to sell more of your listings and have more of your buyers act. Your average peer sells roughly 75% of their listings. How about you?
From 2010-2020, I was blessed to close 94.5% of my listings. Imagine the difference in revenue and efficiency I enjoyed! There is a slough of principles I employed for those results.
Similarly to converting appointments into clients, this metric will impact your profit and loss statement profoundly! Remember, an expired listing costs considerable time and resources. A buyer that doesn't act kills your schedule and drains your gas tank literally and figuratively.
When you're young in the business, you may need to take more risks. When I was at my absolute best in real estate, I only took on one wrong client per year. My time just became too valuable for me to make many mistakes. With age and experience comes stronger discernment. It's my opinion that you are better off walking away from the wrong client relationship and investing that time and energy into finding a better opportunity.
Turnover
Repeated hiring of admin and salespeople is a real chore. It was always one of my least favorite aspects of being a team leader. It became far simpler once I understood what I was looking for, but I knew that it would take some time to gel even with the right hire.
If your help is not sticking around, it may be time to look in the mirror. Most businesses are limited by their leadership. The culture, but more specifically, the average resonating energy of the leader. Most followers will mirror the leaders energy to some degree.
It takes considerable time to create synergy, trust, and flow. Your competence as a leader has everything to do with turnover and team performance. The Energy Leadership Index Assessment that I'm certified to implement is a great place to start for leaders that desire to move up the ladder in leadership. More info is on my site.
Close
In business, the ultimate result is profit! Perhaps it's time to take a fresh look at some of the ideas I've shared today or look at them through a new lens. In most markets, sales are off 30-50% right now. Your efficiency in these areas is crucial in any market, but even more so in down cycles. You will naturally have less times up to bat with the same effort.